News Makershttp://www8.gsb.columbia.edu/chazen/globalinsights/taxonomy/term/124/all
enYou Say You Want a Revolutionhttp://www8.gsb.columbia.edu/chazen/globalinsights/node/261
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<div class="field-item even"><p>Government — and democracy — is in crisis. So said John Micklethwait, editor-in-chief of <em>The Economist</em>, in a recent talk titled “Government is Broken, and Big Business Needs to Help Fix It.” The talk was sponsored by the Jerome A. Chazen Institute of International Business and moderated by Glenn Hubbard, dean of Columbia Business School.</p>
<p>Micklethwait, who is co-author of <a href="http://www.amazon.com/gp/product/1594205396/ref=as_li_tf_tl?ie=UTF8&amp;camp=1789&amp;creative=9325&amp;creativeASIN=1594205396&amp;linkCode=am2&amp;tag=pgus-20" target="_blank">“The Fourth Revolution: The Global Race to Reinvent the State,”</a> reiterated the current state of affairs: Across the Western world (and in many emerging markets), debt is crippling the public sector. Services are deteriorating, politicians are flailing, and the 99 percent are struggling to make ends meet. “Voters,” he said, “have lost faith in the State.”</p>
<p>Micklethwait said it’s going to take a revolution to make government work again as a leaner, more efficient, 21st century machine. Luckily, not only is reimagining government possible, it’s entirely likely. “We’ve done it before — three times in the past 500 years,” he said. Each revolution was gut-wrenching, painful, and ultimately upended society as it was then known.</p>
<h3>Three Revolutions</h3>
<p>In his book, Micklethwait describes the first revolution as the rise of the nation state in the seventeenth century. The concept’s intellectual creator was Thomas Hobbes, who called for a strong, undivided government to save man from himself. In the seminal “Leviathan,” named after the Biblical monster, he outlined human existence as a “war of every man against every man,” condemning us all to a “nasty, brutish, and short” life. As wars raged across Europe, Hobbes argued that absolute rule offered a social contract in which individuals gave up rights (and taxes) in exchange for protection.</p>
<p>But humans seem inevitably drawn toward extremes, writes Micklethwait. Leviathan’s power led to crippling taxation without representation and the crushing of individual liberties. The seeds for the next revolutions were sown.</p>
<p>The second revolution came as the rise of the individual in the eighteenth and nineteenth centuries. Although the American and French revolutions were fought in the name of liberty and self-rule, Micklethwait says the clearest example of what he calls the new Liberal State came from Victorian England, where reformers gradually replaced regal patronage systems with efficiency, freedom, and capitalism. He credits John Stuart Mill with imagining a society where individuals were allowed to develop their abilities and shoot for happiness rather than settle for mere existence.</p>
<p>In the pursuit of happiness, the new Liberals required government to go beyond collecting rent and wielding armies, Micklethwait observes. Now government also had to make life better on a local level by providing services such as sewage systems and law enforcement.</p>
<p>The laundry list of entitlements led to the rise of the Welfare State. Governments agreed to provide an “enforced minimum for a civilized life,” in the words of Beatrice Webb, whom Micklethwait calls the godmother of this third revolution. Originally envisioned as a safety net for the indigent, today’s welfare state extends to all citizens.</p>
<h3>Government Gone Wild</h3>
<p>And this is where the welfare state has gone wrong, writes Micklethwait. Today’s entitlements benefit the same privileged classes that the first two revolutions fought against. In America, “Crony capitalism gives tax breaks to people buying million dollar homes,” said Micklethwait. “So-called choice of insurance carriers has not resulted in competition, but in a healthcare system that’s far more expensive than Europe’s single-payer system.”</p>
<p>Business hasn't helped matters, Micklethwait told the Columbia Business School audience. Fifty years ago, “companies came together in the business roundtable to concentrate on civic matters that would benefit the whole state or whole country.” Their interests have gotten narrower, he said, first banding together to benefit an industry, now lobbying on behalf of a single company.</p>
<p>Leviathan has spawned a viscous, unfulfillable circle, he writes. Politicians want to be reelected, so they promise ever more without attaching the strings of taxation. That contradiction in democracy has led to a bloated, distracted, dysfunctional government that can’t do its core jobs, much less the myriad other burdens it has shouldered, writes Micklethwait.</p>
<h3>Get Ready for Battle</h3>
<p>To prepare for the next revolution — which Micklethwait says could begin with the next 10 years — he says the United States and Europe must first decide the role of the state. His premise starts with slimming Leviathan (a move Margaret Thatcher and Ronald Reagan attempted in the 1980s, which Micklethwait calls “half a revolution” because the cure didn’t take). Even if it clings to Welfare State ideals, government could be much more efficient if it harnessed technology and better applied planning and management techniques, much like successful businesses do.</p>
<p>He would begin with reducing taxes on everyone, but getting rid of all deductions and loopholes for businesses and individuals. He would also reform entitlements to benefit those who really need them. This is especially crucial as society ages. And governments should privatize all kinds of services from education to owning real estate. “It’s crazy that people care more about who performs duties than the results,’ says Micklethwait.</p>
<p>He is hopeful for two reasons. The technology revolution is “democratizing information.” Thanks to new transparency delivered to laptops, cell phones, and even smart watches, citizens can set standards and demand accountability and comparisons of schools, hospitals, and law enforcement districts. Technology is capable not just of creating efficiencies, but also of restoring the power of the individual.</p>
<p>The other reason is competition. Western politicians, business people, and individuals who recognize China as the new superpower may just have “the courage to reform the machinery of government.” It’s a matter, Micklethwait told the Columbia audience, of “restoring democracy to its full potential.”</p></div>
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<span class="field-label">Article Type:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/taxonomy/term/24" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Insights: Forum Highlights</a></div>
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<span class="field-label">Byline:&nbsp;</span>
<div class="field-item even">Sharon Kahn</div>
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<span class="field-label">Global Insights Topics:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/usa" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">United States</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/middle" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">The Middle-Income Trap</a></div>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News Makers</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/economic" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Economic Policy</a></div>
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<span class="field-label">Link:&nbsp;</span>
<div class="field-item even"><a href="https://www.facebook.com/media/set/?set=a.850729378293764.1073741848.187750474591661&amp;type=1" target="_blank">See event photos on Facebook</a></div>
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<span class="field-label">Detailed image:&nbsp;</span>
<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/detailed_image/Micklethwait215x152.jpg" width="215" height="152" alt="" /></div>
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<span class="field-label">Chazen Event Date:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-09-17T00:00:00-04:00">Wednesday, September 17, 2014</span></div>
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<span class="field-label">Date field:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-09-17T13:30:00-04:00">Wednesday, September 17, 2014 - 13:30</span></div>
</div>Wed, 17 Sep 2014 17:51:41 +0000bw2342261 at http://www8.gsb.columbia.edu/chazen/globalinsightsThe Best of Chazen Global Insights on Asiahttp://www8.gsb.columbia.edu/chazen/globalinsights/node/260
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<div class="field-item even"><p>Breakout nations to watch. Where Asia is growing (and where it's not). What the Modi government in India must do before it’s too late.</p>
<p>These are just a few of the articles in a new publication, “The Best of Chazen Global Insights on Asia.”
</p><p>The 16-page publication is free. <a href="http://www8.gsb.columbia.edu/chazen/sites/chazen/files/Chazen%20Global%20Insights%20Asia.pdf">Download it here.</a></p>
<p>Other featured articles and authors include:
</p><ul><li>“Getting China’s State-Market Balance Right” by Joseph E. Stiglitz, University Professor at Columbia University and winner of the Nobel Prize in Economics.</li>
<li>“Lessons from an Accidental Entrepreneur” by Patu Keswani, founder of the Lemon Tree Hotel chain in India.</li>
<li>“How GE Does Business in China” by Mark Hutchinson, president and CEO of GE China.</li></ul>Chazen Global Insights is the signature newsletter of the Jerome A. Chazen Institute of International Business at Columbia Business School. It features in-depth reporting on new research pertinent to international markets, trade policy, and cross-border strategy.</div>
</div><div class="field field-name-field-art-taxon-cat-id field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Article Type:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/taxonomy/term/23" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Insights: Perspective</a></div>
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<span class="field-label">Global Insights Topics:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News Makers</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/economic" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Economic Policy</a></div>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/china" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">China</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/asia" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Asia</a></div>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Investing</a></div>
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<div class="field field-name-field-article-related-link field-type-link-field field-label-above">
<span class="field-label">Link:&nbsp;</span>
<div class="field-item even"><a href="http://www8.gsb.columbia.edu/chazen/sites/chazen/files/Chazen%20Global%20Insights%20Asia.pdf" target="_blank">Download "The Best of Chazen Global Insights: Asia"</a></div>
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<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/detailed_image/Cover%20215x152.jpg" width="215" height="152" alt="" /></div>
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<span class="field-label">Chazen Event Date:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-09-15T00:00:00-04:00">Monday, September 15, 2014</span></div>
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<span class="field-label">Date field:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-09-15T10:15:00-04:00">Monday, September 15, 2014 - 10:15</span></div>
</div>Mon, 15 Sep 2014 14:22:15 +0000bw2342260 at http://www8.gsb.columbia.edu/chazen/globalinsightsJoseph Stiglitz Responds to Thomas Pikettyhttp://www8.gsb.columbia.edu/chazen/globalinsights/node/257
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<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/styles/large/public/field/image/piketty%20book%20adjusted.jpg?itok=J_mOFnIN" width="161" height="250" alt="Cover of &quot;Capital in the Twenty-First Century&quot;" /></div>
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<div class="field-item even"><p>The reception in the United States, and in other advanced economies, of Thomas Piketty’s recent book “<a href="http://www.hup.harvard.edu/catalog.php?isbn=9780674430006" target="_blank">Capital in the Twenty-First Century”</a> attests to growing concern about rising inequality. His book lends further weight to the already overwhelming body of evidence concerning the soaring share of income and wealth at the very top.</p>
<p>Piketty’s book, moreover, provides a different perspective on the 30 or so years that followed the Great Depression and World War II, viewing this period as a historical anomaly, perhaps caused by the unusual social cohesion that cataclysmic events can stimulate. In that era of rapid economic growth, prosperity was widely shared, with all groups advancing, but with those at the bottom seeing larger percentage gains.</p>
<p>Piketty also sheds new light on the “reforms” sold by Ronald Reagan and Margaret Thatcher in the 1980s as growth enhancers from which all would benefit. Their reforms were followed by slower growth and heightened global instability, and what growth did occur benefited mostly those at the top.</p>
<p>But Piketty’s work raises fundamental issues concerning both economic theory and the future of capitalism. He documents large increases in the wealth/output ratio. In standard theory, such increases would be associated with a fall in the return to capital and an increase in wages. But today the return to capital does not seem to have diminished, though wages have. (In the United States, for example, average wages have stagnated over the past four decades.)</p>
<p>The most obvious explanation is that the increase in measured wealth does not correspond to an increase in productive capital – and the data seem consistent with this interpretation. Much of the increase in wealth stemmed from an increase in the value of real estate. Before the 2008 financial crisis, a real-estate bubble was evident in many countries; even now, there may not have been a full correction. The rise in value also can represent competition among the rich for “positional” goods – a house on the beach or an apartment on New York City’s Fifth Avenue.</p>
<p>Sometimes an increase in measured financial wealth corresponds to little more than a shift from unmeasured wealth to measured wealth – shifts that can actually reflect deterioration in overall economic performance. If monopoly power increases, or firms (like banks) develop better methods of exploiting ordinary consumers, it will show up as higher profits and, when capitalized, as an increase in financial wealth.</p>
<p>But when this happens, of course, societal well-being and economic efficiency fall, even as officially measured wealth rises. We simply do not take into account the corresponding diminution of the value of human capital – the wealth of workers.</p>
<p>Moreover, if banks succeed in using their political influence to socialize losses and retain more and more of their ill-gotten gains, the measured wealth in the financial sector increases. We do not measure the corresponding diminution of taxpayers’ wealth. Likewise, if corporations convince the government to overpay for their products (as the major drug companies have succeeded in doing), or are given access to public resources at below-market prices (as mining companies have succeeded in doing), reported financial wealth increases, though the wealth of ordinary citizens does not.</p>
<p>What we have been observing – <a href="http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/documents/publication/wcms_194843.pdf#page=24" target="_blank">wage stagnation</a> and <a href="http://povertydata.worldbank.org/poverty/home/" target="_blank">rising inequality</a>, even as wealth increases – does not reflect the workings of a normal market economy, but of what I call ersatz capitalism. The problem may not be with how markets should or do work, but with our political system, which has failed to ensure that markets are competitive, and has designed rules that sustain distorted markets in which corporations and the rich can (and unfortunately do) exploit everyone else.</p>
<p>Markets, of course, do not exist in a vacuum. There have to be rules of the game, and these are established through political processes. High levels of economic inequality in countries like the United States and, increasingly, those that have followed its economic model, lead to political inequality. In such a system, opportunities for economic advancement become unequal as well, reinforcing low levels of social mobility.</p>
<p>Thus, Piketty’s forecast of still higher levels of inequality does not reflect the inexorable laws of economics. Simple changes – including higher capital-gains and inheritance taxes, greater spending to broaden access to education, rigorous enforcement of anti-trust laws, corporate-governance reforms that circumscribe executive pay, and financial regulations that rein in banks’ ability to exploit the rest of society – would reduce inequality and increase equality of opportunity markedly.</p>
<p>If we get the rules of the game right, we might even be able to restore the rapid and shared economic growth that characterized the middle-class societies of the mid-twentieth century. The main question confronting us today is not really about capital in the twenty-first century. It is about democracy in the twenty-first century.</p>
<p><em>Joseph E. Stiglitz, a Nobel laureate in economics, is University Professor at Columbia University. His most recent book, co-authored with Bruce Greenwald, is </em><a href="https://cup.columbia.edu/book/978-0-231-15214-3/creating-a-learning-society" target="_blank">Creating a Learning Society: A New Approach to Growth, Development, and Social Progress</a>.</p>
<p>Copyright: <a href="http://www.project-syndicate.org " target="_blank">Project Syndicate</a>, 2014.</p>
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</div><div class="field field-name-field-art-taxon-cat-id field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Article Type:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/taxonomy/term/25" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Insights: In Their Own Words</a></div>
</div><div class="field field-name-field-article-subject field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Global Insights Topics:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News Makers</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/economic" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Economic Policy</a></div>
</div><div class="field field-name-field-article-related-content field-type-text-long field-label-above">
<span class="field-label">Related content:&nbsp;</span>
<div class="field-item even">&lt;p&gt;Other op-eds by Joseph E. Stiglitz:&lt;/p&gt;
&lt;p&gt;&lt;a href=&quot;http://www8.gsb.columbia.edu/chazen/globalinsights/node/256&quot; target=&quot;_blank&quot;&gt;Is Australia on the Wrong Track?&lt;/a&gt;&lt;/p&gt;
&lt;p&gt;&lt;a href=&quot;http://www8.gsb.columbia.edu/chazen/globalinsights/node/254&quot; target=&quot;_blank&quot;&gt;Creating a Learning Society&lt;/a&gt;&lt;/p&gt;
&lt;p&gt;&lt;a href=&quot;http://www8.gsb.columbia.edu/chazen/globalinsights/node/250&quot; target=&quot;_blank&quot;&gt;Reforming China&amp;rsquo;s State-Market Balance&lt;/a&gt;&lt;/p&gt;
&lt;p&gt;&lt;a href=&quot;http://www8.gsb.columbia.edu/chazen/globalinsights/node/246&quot; target=&quot;_blank&quot;&gt;The Innovation Enigma&lt;/a&gt;&lt;/p&gt;</div>
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<span class="field-label">Keywords (for meta):&nbsp;</span>
<div class="field-item even">Piketty, Stiglitz, capital, inequality, equality, capitalism, wealth</div>
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<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/detailed_image/Stiglitz215x152_1.gif" width="215" height="152" alt="" /></div>
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<span class="field-label">Chazen Event Date:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-09-04T00:00:00-04:00">Thursday, September 4, 2014</span></div>
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<span class="field-label">Date field:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-09-04T10:00:00-04:00">Thursday, September 4, 2014 - 10:00</span></div>
</div>Thu, 04 Sep 2014 13:58:06 +0000bw2342257 at http://www8.gsb.columbia.edu/chazen/globalinsightsIndia Has New Government. Now What?http://www8.gsb.columbia.edu/chazen/globalinsights/node/253
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<div class="field-item even"><p>On the eve of the landslide electing India’s new prime minister, two Columbia University economists received accolades of a different sort last week: Jagdish Bhagwati, professor of economics, law and international affairs, and Arvind Panagariya, professor of economics, shared the prestigious George S. Eccles Prize for Excellence in Economic Writing for their book, <a href="http://www.publicaffairsbooks.com/book/paperback/why-growth-matters/9781610393737" target="_blank"> “Why Growth Matters: How Economic Growth in India Reduced Poverty and the Lessons for Other Developing Countries.”</a></p>
<p>Although India has been able to reduce poverty from afflicting more than half of the population in the late 1970s to roughly one-fifth today, the country’s growth rate has stalled in the past few years. During a Q&amp;A discussion moderated by Glenn Hubbard, dean of Columbia Business School, the professors challenged notions of protectionism and wealth redistribution that has been the guiding force in India. They summarized the book's premise....<br />
• Governments need revenues to support infrastructure and social programs.<br />
• Since the poor can’t afford these programs, and since raising taxes is not popular in a democracy, the economy needs to generate wealth that can, in turn, grow businesses and throw off rupees.<br />
• A rising economy means more and better paying jobs and a larger pie to share with the government even when the tax rate stays the same.<br />
• Eventually that money can be directed to alleviate poverty.</p>
<p>If these ideas sound familiar, there’s a reason: they contain echoes of trickle-down economics as popularized by Margaret Thatcher and Ronald Reagan. But, during the Q&amp;A, Bhagwati and Panagariya shied away from the term, noting the issues in India are vastly different from those of more developed countries.</p>
<h3>The Hot Issues</h3>
<p>Days after the Eccles Prize was awarded, Narendra Modi was elected prime minister by more votes than in any democratic election in history — anywhere. Both Bhagwati and Panagariya know Modi (in fact, a <a href="http://www.nytimes.com/2014/05/07/world/asia/local-policies-help-an-indian-candidate-narendra-modi-trying-to-go-national.html?emc=eta1&amp;_r=0"><em>New York Times</em></a> article suggested Panagaiya may be tapped as his chief economic advisor), and both authors commented on items certain to be on Modi’s agenda:</p>
<p><strong>Labor Laws:</strong> Restrictive labor policies have severely handicapped India’s competitiveness in global markets, say the authors. One example: the burden employers in India face when they want to terminate employees.</p>
<p>Any disputes must be ruled on by labor courts and tribunals that “overwhelmingly rule in favor of workers,” the book states. It is “impossible for an industrial establishment with one hundred or more workers to lay off or retrench workers even if it is unprofitable and is therefore forced to close the unit.” The writers continue: “The burdensome labor laws explain why entrepreneurs in sectors such as apparel, in which labor costs account for more than 80 percent of total costs, choose to stay tiny.” For the same reason, foreign investors tend to take their business to less expensive emerging markets, say the authors.</p>
<p><strong>Infrastructure: </strong>Modi has indicated willingness to redirect government money spent on social programs to infrastructure such as roads, airports, and especially electricity generation. Indeed, as chief minister of Gujarat, he routinely found his way around political and regulatory barriers to grow the state's economy at 10 percent a year over the past decade, often double that of India as a whole. </p>
<p><strong>Corruption:</strong> The other priority on Modi’s agenda must be attacking corruption with institutional reforms and enforcement. Noting that business reforms may take a while to work their magic, Bhagwati said corruption must be dealt with immediately. “For India to deliver growth, this is an issue that can't wait 25 years.”</p>
<p>Still, the prospect of Modi's election made the co-authors of “Why Growth Matters” optimistic. “If GDP growth could reach 10 percent on a consistent basis, India could become the third largest economy in the world in 15 or 20 years,” said Panagaiya. In fact, “since India has more people, it’s entirely possible that India could exceed China.”</p>
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</div><div class="field field-name-field-art-taxon-cat-id field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Article Type:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/taxonomy/term/134" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Chazen India Insights</a></div>
</div><div class="field field-name-field-article-byline field-type-text field-label-above">
<span class="field-label">Byline:&nbsp;</span>
<div class="field-item even">Sharon Kahn</div>
</div><div class="field field-name-field-article-subject field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Global Insights Topics:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News Makers</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/economic" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Economic Policy</a></div>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/asia" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Asia</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/india" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">India</a></div>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Investing</a></div>
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<span class="field-label">Image:&nbsp;</span>
<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/image2/Modi215x152.jpg" width="200" height="141" alt="" /></div>
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<span class="field-label">Related links:&nbsp;</span>
<div class="field-item even"><div class="field-collection-view clearfix view-mode-full field-collection-view-final"><div class="entity entity-field-collection-item field-collection-item-field-article-related-links clearfix" about="/chazen/globalinsights/field-collection/field-article-related-links/29916" typeof="">
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<div class="field field-name-field-article-related-link field-type-link-field field-label-above">
<span class="field-label">Link:&nbsp;</span>
<div class="field-item even"><a href="http://www8.gsb.columbia.edu/newsroom/newsn/2752/university-professors-awarded-2014-eccles-prize#.U3o3P1N7agk" target="_blank">Learn more about the George S. Eccles Prize for Excellence in Economic Writing</a></div>
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<span class="field-label">Keywords (for meta):&nbsp;</span>
<div class="field-item even">india, panagariya, bhagwati, modi, elections, economy, growth, redistribution, policy</div>
</div><div class="field field-name-field-article-detailed-image field-type-image field-label-above">
<span class="field-label">Detailed image:&nbsp;</span>
<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/detailed_image/Eccles215x152.jpg" width="215" height="152" alt="" /></div>
</div><div class="field field-name-field-article-event-date field-type-datetime field-label-above">
<span class="field-label">Chazen Event Date:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-05-19T00:00:00-04:00">Monday, May 19, 2014</span></div>
</div><div class="field field-name-field-article-area-of-focus-id field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Chazen Area of Focus:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/taxonomy/term/113" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Asia and Pacific Rim</a></div>
</div><div class="field field-name-field-article-date-field field-type-datestamp field-label-above">
<span class="field-label">Date field:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-05-19T11:45:00-04:00">Monday, May 19, 2014 - 11:45</span></div>
</div>Mon, 19 May 2014 15:47:29 +0000bw2342253 at http://www8.gsb.columbia.edu/chazen/globalinsightsTunisia's Fight for Democracyhttp://www8.gsb.columbia.edu/chazen/globalinsights/node/252
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<div class="field-item even"><p>En route to a meeting with President Obama in early April, the Prime Minister of Tunisia stopped by Columbia Business School to address a standing-room-only crowd. Jet-lagged but brimming with a kind of determined optimism, Mehdi Jomaa declared, “We don't speak of Tunisia as being part of the Arab Spring. We think of our country as on the road to democracy.”</p>
<p>In the three years since a produce vendor from the small city of Sidi Bouzid set himself afire in protest — igniting a wave of dissent not just in Tunisia but throughout the Arab world — the country’s citizens have proven unwilling to settle for less than democracy. “The revolution was leaderless,” Jomaa said. “The aim was not fully political, but encompassed the right to jobs, the rights of freedom.”</p>
<p>Jomaa, whose transition government took office on January 29, promised elections by the end of 2014. The previous Parliament gave the Prime Minister a running start by ratifying a new constitution in December. Since then, Jomaa has laid the groundwork for reforms through talks with various political, financial, and educational groups. He has wooed investors in friendly countries such as France and the United States (“Did you know Tunisia was among the first countries to recognize the United States as its own country in 1799?” he told the Columbia Business School audience.) And Jomaa is gnawing at a state budget that ballooned under the previous government, which increased staff in an attempt to boost employment.</p>
<p>But most importantly, the current administration has stabilized the country. “The best thing we can do for democracy is to restore the authority of the state, the authority of law, and the authority of human rights,” Jomaa said. “It’s safer each day in Tunisia than it was the day before.”</p>
<h3>A Brief History of Tunisian Revolution</h3>
<p>Tunisia’s transition from brutal dictatorship to self-rule has been marked by surges and pullbacks, public outcry and acrimony, shifting allegiances and violence. The revolution began in late 2010, when a policewoman confiscated the produce cart of Mohamed Bouazizi, piling physical and verbal abuse onto the 26-year-old, who was the sole wage-earner for his eight-member family. Further humiliated when he was denied the opportunity to pay his 10-dinar fine (roughly equivalent to a day’s wages), Bouazizi set himself afire outside police headquarters. Peaceful marches the next day protesting the economic and political system that led to Bouazizi's death quickly turned to riots when the police responded with force.</p>
<p>On January 14, less than a month after the incident, President Zine el Abidine Ben Ali fled Tunisia after 24 years of rule. The Constitutional Court approved a caretaker government, but street rallies escalated, with protestors angry that key members had been part of Ben Ali's Constitutional Democratic Rally (RCD) party. Several non-RCD ministers resigned. Two weeks later, the acting Prime Minister appointed a new government made up entirely of non-RCD members other than himself, promising elections within six months. As protests continued, he, too, resigned a month later.</p>
<p>Elections were held in October 2011. The Islamic Ennahda Party, which had been banned under the Ben Ali reign, took a plurality of seats, but the country remained restive. The party had supported democracy and outreach to the West, but critics worried that connections to the Muslim Brotherhood and more militant organizations would threaten Tunisia’s moderate way of life.</p>
<p>Two assassinations of Ennahda critics threw Tunisians again into street riots and protests: Chokri Belaid, leader of the rival Democratic Patriots’ Movement, was killed in February 2013, followed by the July 2013 murder of Mohamed Brahmi, who led the People’s Movement. Both homicides were traced to the same gun, with the assassin believed to be a radical Islamist who had been implicated in weapons smuggling from Libya. His organization, Ansar al-Sharia, has been listed as a terrorist group, accused of storming the US embassy and attacks on art exhibits, establishments serving alcohol, a television station that aired the movie Persepolis (because it depicted God), and on shrines it considered un-Islamic.</p>
<p>As calls mounted for the resignation of the Ennahda government, rallies grew even larger and more frequent and general strikes closed cities and industries. When 42 members of the 217-seat constituent assembly resigned, the Parliament unraveled. Last October, Prime Minister Ali Laarayedh announced that the government would disband, but only after the assembly passed a new constitution and set up the groundwork for a new election.</p>
<p>In the next months, as protests continued, members from 21 parties hammered out details in sometimes contentious debate. In the end, though, the assembly adopted a 146-article constitution by a vote of 200 to 12. On Dec. 13, 2013, Mehdi Jomaa, who was serving as Minister of Industry, was elected acting prime minister.</p>
<h3>“A Moderate People”</h3>
<p>Despite the rancor, Jomaa insisted he was not surprised at the compromises, noting that the new constitution celebrates universal rights, equality of genders, and freedom of worship. “By nature,” he said, “Tunisians are a moderate people. In 1846, Tunisia was the first country to abolish slavery. In 1878, we adopted our first constitution. In 1956, Tunisia legalized equality between men and women.”</p>
<p>Jomaa, a 52-year-old engineer who lived in France for much of his career, appeared reluctant to take on too much as part of his caretaker role, saying “we won’t make many reforms.” However he said that a main priority involves creating a climate for prosperity. Noting that unemployment was a main driver of the revolution, he said the economy has only gotten worse in recent years. “Before the revolution Tunisia was growing at about 5 percent a year,” Jomaa said. “Since then, the economy has only been growing at a two- to three-percent pace. Instability is not a good climate for creating jobs. The economy is a price you have to pay for revolution.“</p>
<p>Pointing out that the produce vendor's home town of Sidi Bouzid is located about 200 miles from Tunis, Jomaa also acknowledged the inequality between the inland regions of Tunisia and the coast.</p>
<p>Still, Jomaa insisted, “Tunisia is a land for investors,” noting that the majority of foreign companies that had a pre-revolution presence in the country remain. Because three cultures intersect in Tunisia, he said, geography is a big draw. “More than 80 percent of our trade is with Europe. We're a part of the Middle East. And we are in Africa, where the future lies.” In addition to the competitiveness of labor, Jormaa said, “one of our best resources is education,” noting that Tunisia’s standard of education is on par with Europe’s.</p>
<p>Audience member and Columbia professor Joseph Stiglitz wrapped up the evening by declaring that one of Jomaa’s biggest duties involve restoring hope to a country that’s been wracked by inequality and violence. “Mr. Jomaa has a huge, heavy responsibility,” he said. “Failure is not a choice.”</p></div>
</div><div class="field field-name-field-art-taxon-cat-id field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Article Type:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/taxonomy/term/24" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Insights: Forum Highlights</a></div>
</div><div class="field field-name-field-article-byline field-type-text field-label-above">
<span class="field-label">Byline:&nbsp;</span>
<div class="field-item even">Sharon Kahn</div>
</div><div class="field field-name-field-article-subject field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Global Insights Topics:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News Makers</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/economic" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Economic Policy</a></div>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Investing</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/africa" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Africa</a></div>
</div><div class="field field-name-field-article-topic-id field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Topic:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/topics/business" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Business Economics and Public Policy</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/taxonomy/term/28" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Capital Markets and Investments</a></div>
</div><div class="field field-name-field-article-image field-type-image field-label-above">
<span class="field-label">Image:&nbsp;</span>
<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/image2/Jomaa%20retouched.jpg" width="200" height="141" alt="" /></div>
</div><div class="field-collection-container clearfix"><div class="field field-name-field-article-related-links field-type-field-collection field-label-above">
<span class="field-label">Related links:&nbsp;</span>
<div class="field-item even"><div class="field-collection-view clearfix view-mode-full"><div class="entity entity-field-collection-item field-collection-item-field-article-related-links clearfix" about="/chazen/globalinsights/field-collection/field-article-related-links/29914" typeof="">
<div class="content">
<div class="field field-name-field-article-related-link field-type-link-field field-label-above">
<span class="field-label">Link:&nbsp;</span>
<div class="field-item even"><a href="http://www7.gsb.columbia.edu/video/v/node/3575" target="_blank">Watch a video of Medhi Jomaa's talk</a></div>
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<div class="field-item odd"><div class="field-collection-view clearfix view-mode-full field-collection-view-final"><div class="entity entity-field-collection-item field-collection-item-field-article-related-links clearfix" about="/chazen/globalinsights/field-collection/field-article-related-links/29915" typeof="">
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<div class="field field-name-field-article-related-link field-type-link-field field-label-above">
<span class="field-label">Link:&nbsp;</span>
<div class="field-item even"><a href="https://www.facebook.com/media/set/?set=a.759592267407476.1073741842.187750474591661&amp;type=1" target="_blank">See photos of Medhi Jomaa's visit to Columbia Business School</a></div>
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</div></div><div class="field field-name-field-article-detailed-image field-type-image field-label-above">
<span class="field-label">Detailed image:&nbsp;</span>
<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/detailed_image/Jomaa%20retouched.jpg" width="215" height="152" alt="" /></div>
</div><div class="field field-name-field-article-event-date field-type-datetime field-label-above">
<span class="field-label">Chazen Event Date:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-04-08T00:00:00-04:00">Tuesday, April 8, 2014</span></div>
</div><div class="field field-name-field-article-date-field field-type-datestamp field-label-above">
<span class="field-label">Date field:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-04-08T16:45:00-04:00">Tuesday, April 8, 2014 - 16:45</span></div>
</div>Tue, 08 Apr 2014 21:09:33 +0000bw2342252 at http://www8.gsb.columbia.edu/chazen/globalinsightsReforming China's State-Market Balancehttp://www8.gsb.columbia.edu/chazen/globalinsights/node/250
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<div class="field-item even"><p>No country in recorded history has grown as fast — and moved as many people out of poverty — as China over the last thirty years. A hallmark of China’s success has been its leaders’ willingness to revise the country’s economic model when and as needed, despite opposition from powerful vested interests. And now, as China implements another series of fundamental reforms, such interests are already lining up to resist. Can the reformers triumph again?</p>
<p>In answering that question, the crucial point to bear in mind is that, as in the past, the current round of reforms will restructure not only the economy, but also the vested interests that will shape future reforms (and even determine whether they are possible). And today, while high-profile initiatives — for example, the government’s widening anticorruption campaign — receive much attention, the deeper issue that China faces concerns the appropriate roles of the state and the market.</p>
<p>When China began its reforms more than three decades ago, the direction was clear: the market needed to play a far greater role in resource allocation. And so it has, with the private sector far more important now than it was. Moreover, there is a broad consensus that the market needs to play what officials call a “decisive role” in many sectors where state-owned enterprises (SOEs) dominate. But what should its role be in other sectors, and in the economy more generally?</p>
<p>Many of China’s problems today stem from too much market and too little government. Or, to put it another way, while the government is clearly doing some things that it should not, it is also not doing some things that it should.</p>
<p>Worsening environmental pollution, for example, threatens living standards, while inequality of income and wealth now rivals that of the United States and corruption pervades public institutions and the private sector alike. All of this undermines trust within society and in government — a trend that is particularly obvious with respect to, say, food safety.</p>
<p>Such problems could worsen as China restructures its economy away from export-led growth toward services and household consumption. Clearly, there is room for growth in private consumption; but embracing America’s profligate materialist lifestyle would be a disaster for China &amp;mdah; and the planet. Air quality in China is already putting peoples’ lives at risk; global warming from even higher Chinese carbon emissions would threaten the entire world.</p>
<h3>A Better Balance</h3>
<p>There is a better strategy. For starters, Chinese living standards could and would increase if more resources were allocated to redress large deficiencies in health care and education. Here, government should play a leading role, and does so in most market economies, for good reason.</p>
<p>America’s privately-based healthcare system is expensive, inefficient, and achieves far worse outcomes than those in European countries, which spend far less. A more market-based system is not the direction in which China should be going. In recent years, the government has made important strides in providing basic health care, especially in rural areas, and some have likened China’s approach to that of the United Kingdom, where private provision is layered atop a public base. Whether that model is better than, say, French-style government-dominated provision may be debated. But if one adopts the UK model, the level of the base makes all the difference; given the relatively small role of private healthcare provision in the UK, the country has what is essentially a public system.</p>
<p>Likewise, though China has already made progress in moving away from manufacturing toward a service-based economy (the GDP share of services exceeded that of manufacturing for the first time in 2013), there is still a long way to go. Already, many industries are suffering from overcapacity, and efficient and smooth restructuring will not be easy without government help.</p>
<p>China is restructuring in another way: rapid urbanization. Ensuring that cities are livable and environmentally sustainable will require strong government action to provide sufficient public transport, public schools, public hospitals, parks, and effective zoning, among other public goods.</p>
<h3>Past as Prologue</h3>
<p>One major lesson that should have been learned from the post-2008 global economic crisis is that markets are not self-regulating. They are prone to asset and credit bubbles, which inevitably collapse — often when cross-border capital flows abruptly reverse direction — imposing massive social costs.</p>
<p>America’s infatuation with deregulation was the cause of the crisis. The issue is not just the pacing and sequencing of liberalization, as some suggest; the end result also matters. Liberalization of deposit rates led to America’s savings and loan crisis in the 1980s. Liberalization of lending rates encouraged predatory behavior that exploited poor consumers. Bank deregulation led not to more growth, but simply to more risk.</p>
<p>China, one hopes, will not take the route that America followed, with such disastrous consequences. The challenge for its leaders is to devise effective regulatory regimes that are appropriate for its stage of development.</p>
<p>That will require the government to raise more money. Local governments’ current reliance on land sales is a source of many of the economy’s distortions — and much of the corruption. Instead, the authorities should boost revenue by imposing environmental taxes (including a carbon tax), a more comprehensive progressive income tax (including capital gains), and a property tax. Moreover, the state should appropriate, through dividends, a larger share of SOEs’ value (some of which might be at the expense of these firms’ managers.)</p>
<p>The question is whether China can maintain rapid growth (though somewhat slower than its recent breakneck pace), even as it reins in credit expansion (which could cause an abrupt reversal in asset prices), confronts weak global demand, restructures its economy, and fights corruption. In other countries, such daunting challenges have led to paralysis, not progress.</p>
<p>The economics of success is clear: higher spending on urbanization, health care, and education, funded by increases in taxes, could simultaneously sustain growth, improve the environment, and reduce inequality. If China’s politics can manage the implementation of this agenda, China and the entire world will be better off.</p>
<p><em>Joseph E. Stiglitz, a Nobel laureate in economics, is University Professor at Columbia University. His most recent book is </em>“The Price of Inequality: How Today’s Divided Society Endangers our Future.”</p>
Copyright: <a href="http://www.project-syndicate.org">Project Syndicate</a>, 2014.</div>
</div><div class="field field-name-field-art-taxon-cat-id field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Article Type:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/taxonomy/term/25" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Insights: In Their Own Words</a></div>
</div><div class="field field-name-field-article-byline field-type-text field-label-above">
<span class="field-label">Byline:&nbsp;</span>
<div class="field-item even">Joseph E. Stiglitz</div>
</div><div class="field field-name-field-article-subject field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Global Insights Topics:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News Makers</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/china" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">China</a></div>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/asia" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Asia</a></div>
</div><div class="field field-name-field-article-image field-type-image field-label-above">
<span class="field-label">Image:&nbsp;</span>
<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/image2/stones.jpg" width="200" height="150" alt="" /></div>
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<div class="field-item even"><div class="field-collection-view clearfix view-mode-full"><div class="entity entity-field-collection-item field-collection-item-field-article-related-links clearfix" about="/chazen/globalinsights/field-collection/field-article-related-links/29910" typeof="">
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<div class="field field-name-field-article-related-link field-type-link-field field-label-above">
<span class="field-label">Link:&nbsp;</span>
<div class="field-item even"><a href="http://www8.gsb.columbia.edu/chazen/globalinsights/node/245/Why+China%26%23039%3Bs+GDP+Will+Double+in+10+Years" target="_blank">Why China's GDP Will Double in the Next Decade</a></div>
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<div class="field-item odd"><div class="field-collection-view clearfix view-mode-full"><div class="entity entity-field-collection-item field-collection-item-field-article-related-links clearfix" about="/chazen/globalinsights/field-collection/field-article-related-links/29911" typeof="">
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<div class="field field-name-field-article-related-link field-type-link-field field-label-above">
<span class="field-label">Link:&nbsp;</span>
<div class="field-item even"><a href="http://www8.gsb.columbia.edu/chazen/globalinsights/node/241/China%26amp%3Brsquo%3Bs+Land+Experiment" target="_blank">China's Land Experiment</a></div>
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<div class="field-item even"><div class="field-collection-view clearfix view-mode-full"><div class="entity entity-field-collection-item field-collection-item-field-article-related-links clearfix" about="/chazen/globalinsights/field-collection/field-article-related-links/29912" typeof="">
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<div class="field field-name-field-article-related-link field-type-link-field field-label-above">
<span class="field-label">Link:&nbsp;</span>
<div class="field-item even"><a href="http://www8.gsb.columbia.edu/chazen/globalinsights/node/236/Financing+China%26amp%3Brsquo%3Bs+Future" target="_blank">Financing China's Future</a></div>
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<div class="field-item odd"><div class="field-collection-view clearfix view-mode-full field-collection-view-final"><div class="entity entity-field-collection-item field-collection-item-field-article-related-links clearfix" about="/chazen/globalinsights/field-collection/field-article-related-links/29913" typeof="">
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<span class="field-label">Link:&nbsp;</span>
<div class="field-item even"><a href="http://www8.gsb.columbia.edu/chazen/globalinsights/node/235/China%26amp%3Brsquo%3Bs+Mutual+Fund+Difference" target="_blank">China's Mutual Fund Difference</a></div>
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<span class="field-label">Detailed image:&nbsp;</span>
<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/detailed_image/Stiglitz.jpg" width="215" height="143" alt="" /></div>
</div><div class="field field-name-field-article-event-date field-type-datetime field-label-above">
<span class="field-label">Chazen Event Date:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-04-02T00:00:00-04:00">Wednesday, April 2, 2014</span></div>
</div><div class="field field-name-field-article-date-field field-type-datestamp field-label-above">
<span class="field-label">Date field:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-04-02T07:15:00-04:00">Wednesday, April 2, 2014 - 07:15</span></div>
</div>Wed, 02 Apr 2014 11:20:00 +0000bw2342250 at http://www8.gsb.columbia.edu/chazen/globalinsightsOne Europe, One Banking Systemhttp://www8.gsb.columbia.edu/chazen/globalinsights/node/249
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<div class="field-item even"><p>It’s a premise that could change the European Union forever — and largely for the better, agreed two speakers at a recent panel discussion cosponsored by the Chazen Institute titled “Banking Union in Europe: Prospects and Challenges.” But that’s where their accord ended.</p>
<p>“At this point, banking union is on track,” said Vítor Gaspar, special advisor at Banco de Portugal, and former finance minister of Portugal. “I am the optimist in the debate.”</p>
<p>Athanasios Orphanides, professor at the MIT Sloan School of Management and former governor of the Central Bank of Cyprus, was the somewhat reluctant pessimist. After an EU council meeting in 2012 agreed in principal to create a banking union (as well as an economic and financial union), a recession slammed Europe. “We’ve seen great animosity between the member states,” he said. “In the past, every time a crisis or challenge appeared, governments worked together for a solution that improved Europe overall. Since 2009, each country has been pushed to tackle its own problems.” With such polarization operating as the new norm, Orphanides said, “I am concerned about the Union as a whole and I am pessimistic that banking union will ever happen.”</p>
<h3>Why Banking Union?</h3>
<p>Although 17 states within the European Union share a single currency, each country operates within its own financial context, which means borrowing costs and prices of goods differ across borders, and each country supervises its own financial institutions. In theory, a central banking system would allow individuals and large and small businesses the same access to money, at the same rates, in Greece as in Germany. Outflows of cash, such as the flight of capital from Spain during the recent recessionary panic, would be less likely since deposits would be insured in the weaker countries just as they are in France.</p>
<p>A banking system does not operate in a vacuum. Financial markets must be integrated and linkages created to assure smooth flows of money. A backstop must be created to insure deposits and remove any correlation between country and banking risks.</p>
<p>The European Central Bank already exists as the supervisory mechanism. In December, eurozone finance ministers laid the groundwork for banking union by agreeing to shut down sickly banks within member states that use the euro. How that will be accomplished is still fuzzy, though, since the ECB lacks the equivalent of the US Federal Deposit Insurance Corp., which has the authority to shutter American banks.</p>
<p>Orphanides argued that strong states such as Germany have little incentive to make banks within their borders give up their advantages. “The mechanism that created the [eurozone] 20 years ago leverages stronger countries at a cost to weaker ones,” he said. “It’s a government’s job to protect its economy and some countries don’t want to give away their competitive advantages.”</p>
<p>Gaspar argued that the EU — like all democratic institutions — is a work in progress, and the current strife is temporary. Citing various financial and currency crisis in the 1980s and 1990s — not to mention the most recent recession — he said, “We’re impatient, but we forget that Europe has always progressed from crisis to crisis, coming to consensus after the general view was that all was lost.” Gaspar also pointed out that the Federal Reserve and FDIC weren’t created until 1933, 140 years after the US launched its financial system. “I think we are progressing much faster than the United States,” he said.</p>
<h3>Overcoming National Challenges</h3>
<p>To be sure, differences of opinion often split along national borders. Gaspar pointed out that Germany, with its long memory of how rising prices can wreak havoc, is more concerned about inflation than other member states. Also, as the eurozone’s healthiest member, Germany can focus on how low interest rates impact pension funds and other bund investors, and how excessive debt could cripple future generations. Elsewhere in Europe, the more important driver seems to be unemployment. “The differences in viewpoints are remarkable,” Gaspar observed.</p>
<p>Still, Germany remains committed to monetary union, he said — as do even the weaker member states that have suffered through painful austerity programs. “The reaction has been more benign than might first appear, given the lively debates and protests,” he said. Although the next round of elections later this year could see some new faces in power, “largely the same national politicians are in place in 2014 as in 2011.”</p>
<p>Even if banking and broader financial union is achieved, don’t look for political union across Europe, the speakers agreed. “That’s just not going to happen in my lifetime,” said Orphanides.</p></div>
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<span class="field-label">Article Type:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/taxonomy/term/24" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Insights: Forum Highlights</a></div>
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<span class="field-label">Byline:&nbsp;</span>
<div class="field-item even">Sharon Kahn</div>
</div><div class="field field-name-field-article-subject field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Global Insights Topics:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News Makers</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/europe" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Europe</a></div>
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<span class="field-label">Image:&nbsp;</span>
<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/image2/Knot.gif" width="200" height="141" alt="" /></div>
</div><div class="field field-name-field-article-related-id field-type-node-reference field-label-above">
<span class="field-label">Related articles:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/node/247">Lessons from Portugal</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/node/239">5 Bons Mots from Glenn Hubbard</a></div>
</div><div class="field field-name-field-article-event-date field-type-datetime field-label-above">
<span class="field-label">Chazen Event Date:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-03-26T00:00:00-04:00">Wednesday, March 26, 2014</span></div>
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<span class="field-label">Date field:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-03-26T15:45:00-04:00">Wednesday, March 26, 2014 - 15:45</span></div>
</div>Wed, 26 Mar 2014 19:50:29 +0000bw2342249 at http://www8.gsb.columbia.edu/chazen/globalinsightsLessons from Portugalhttp://www8.gsb.columbia.edu/chazen/globalinsights/node/247
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<div class="field-item even"><p><em>Despite high praise from the European Commission, the European Central Bank, and the International Monetary Fund, many Portuguese vilified Vítor Gaspar as the architect of the country's painful austerity measures. Finance minister from 2011 to 2013, he resigned abruptly last summer, saying Portugal was embarking on a new phase of investment that required “credibility and confidence,” which he felt he could no longer provide. Confident that Portugal is now on the right track, Gaspar, an economist currently serving as special adviser at Banco de Portugal, recently sat down with Chazen Global Insights to discuss his country's future.</em></p>
<h3>Has Portugal's economy turned the corner?</h3>
<p>Definitely. The economy started growing in the second quarter of 2013, reaching 1.9 percent GDP growth for the year. That's a very positive development, and Portugal is now actually growing faster than Europe as a whole.</p>
<h3>How has that been possible, considering Portugal's situation was pretty dire not long ago?</h3>
<p>The austerity program Portugal underwent was really an adjustment program to rebalance domestic supply and demand. Through budget cuts and taxes, the country eliminated its double-digit current account deficit, which now makes us a net lender. Unemployment, which peaked at 17.7 percent in 2010, dropped to 15.3 percent by the end of last year. Even more impressive is youth unemployment, which has fallen from above 40 percent to about 35 percent. We've got a way to go, but 2014 is definitely trending better.</p>
<h3>Nevertheless, the austerity measures created political unrest within Portugal and anger among the populace. Looking back, would you have done anything differently?</h3>
<p>I would not use the word “anger,” but “concern.” Recessions are painful and clearly lively political debate occurred. People manifested their views. But I also saw remarkable wisdom and the ability to adjust under difficult circumstances. I don’t see anything I would have done differently.</p>
<h3>Still, in your letter of resignation as Finance Minister last July, you indicated you no longer had the public confidence....</h3>
<p>One of the strong points of democracy is that everybody is replaceable. My resignation followed very specific circumstances, in which terms were renegotiated upwards twice. My resignation was a matter of assuming responsibility. Politically, for Portugal to continue implementing the austerity measures, it was key to regain public trust. For the most part, the same elected officials who held their posts before the recession are still in power, and that's a sign that people understood these were painful measures we had to take.</p>
<h3>What are you doing now?</h3>
<p>A couple of things. I am special advisor to the Central Bank of Portugal where I have, among other responsibilities, a mandate to reevaluate the research department. I am chairing a commission on taxation of the digital economy for the European Union. Deadlines for reporting on both of those projects is the end of the first half of the year.</p>
<p>I am also continuing my own research. I am working on a paper on lessons the EU can learn from Alexander Hamilton, who helped make US Treasuries the ultimate safe asset and established doctrines that gave the Federal Reserve powers to help stop financial panics. He was a very sophisticated, well articulated executive and, even though the politics of 21st century Europe are far different from 18th century America, I think we can adapt his lessons to our current situations.</p></div>
</div><div class="field field-name-field-art-taxon-cat-id field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Article Type:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/taxonomy/term/25" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Insights: In Their Own Words</a></div>
</div><div class="field field-name-field-article-byline field-type-text field-label-above">
<span class="field-label">Byline:&nbsp;</span>
<div class="field-item even">Sharon Kahn</div>
</div><div class="field field-name-field-article-subject field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Global Insights Topics:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News Makers</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/europe" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Europe</a></div>
</div><div class="field field-name-field-article-detailed-image field-type-image field-label-above">
<span class="field-label">Detailed image:&nbsp;</span>
<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/detailed_image/Gaspar.gif" width="215" height="152" alt="" /></div>
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<span class="field-label">Chazen Event Date:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-03-13T00:00:00-04:00">Thursday, March 13, 2014</span></div>
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<span class="field-label">Date field:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-03-09T11:15:00-04:00">Sunday, March 9, 2014 - 11:15</span></div>
</div>Thu, 13 Mar 2014 15:19:33 +0000bw2342247 at http://www8.gsb.columbia.edu/chazen/globalinsightsWorld Markets: It's Sink or Swimhttp://www8.gsb.columbia.edu/chazen/globalinsights/node/244
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<div class="field-item even">Jacob Frenkel has lived on both sides of the financial world: First, as a regulator — governor of the Central Bank of Israel — and now as a financial services firm; he’s currently chairman of JPMorgan Chase International. As a panelist in the Chazen Institute’s recent World Economic Forum, he had this to say about the road ahead in world markets:
<p><b>What economists can’t (or shouldn’t) do:</b> The purpose of economics is not to predict tomorrow but to understand processes as you go forward. So I will disappoint those who ask what should be his or her action tomorrow as they call the broker. This is not the type of analysis we bring.</p>
<p><b>Why some countries win:</b> What is common to those countries that “made it” during the most recent crisis versus those countries that did not is that, by and large, market economies are doing better than centrally planned economies. It’s not an accident that the latter collapsed. The most recent crisis has highlighted the critical role that is played by the financial sector: a banking system that is well capitalized, that has ample liquidity, and that is not excessively leveraged, is much stronger than a banking system that is not characterized by these features. In fact, countries with strong banking systems weather the storm in a much better way than those with weak banking systems. Great attention must be given to strengthen the financial system in general and the banking system in particular.</p>
<p><b>The importance of financial regulation:</b> Good regulation is an intrinsic part of a well functioning market economy. It is important, however, that these regulations are fully enforced. Hence, supervision, especially of financial markets, is also an integral part of a market economy. Clarity and transparency are two important building blocks that facilitate a well functioning system. As is said about transparency: what you see is what you get, and what you don’t see gets you.</p>
<p><b>Credibility is key:</b> When we speak about the concept of credibility we say basically that the future matters. Because if we did not care about the future consequences of what we do today, we would not worry about being or not being credible. Credibility is a form of capital. Capital, like flowers, must be watered, must be maintained, and should not be depreciated. Credibility is accumulated slowly and lost quickly. As the saying goes, credibility is never owned, it is just rented.</p>
<p><b>What destroys society:</b> I used to be a governor of a central bank of a country that had hyperinflation — Israel. I was governor throughout the 1990s. And I can tell you one thing: there is nothing that can destroy the fabric of society more than uncontrolled inflation. We should really watch for it. There has never been a situation in which inflation went out of control without the irresponsible excessive printing of money. The fact that we do not have inflation now and we did not have it for quite a few years in this part of the world is very good news, but I would never throw away the old textbooks dealing with inflation because they might prove their usefulness in the future. </p></div>
</div><div class="field field-name-field-art-taxon-cat-id field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Article Type:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/taxonomy/term/24" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Insights: Forum Highlights</a></div>
</div><div class="field field-name-field-article-subject field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Global Insights Topics:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News Makers</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/economic" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Economic Policy</a></div>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Investing</a></div>
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<span class="field-label">Image:&nbsp;</span>
<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/image2/Frenkel2.gif" width="200" height="141" alt="" /></div>
</div><div class="field field-name-field-article-related-id field-type-node-reference field-label-above">
<span class="field-label">Related articles:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/node/238">Predicting (or Not) the Future of the World Economy</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/node/239">5 Bons Mots from Glenn Hubbard</a></div>
<div class="field-item even"><a href="/chazen/globalinsights/node/242">Joseph Stiglitz&#039;s Crystal Ball</a></div>
</div><div class="field field-name-field-article-detailed-image field-type-image field-label-above">
<span class="field-label">Detailed image:&nbsp;</span>
<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/detailed_image/frenkel.gif" width="215" height="152" alt="" /></div>
</div><div class="field field-name-field-article-event-date field-type-datetime field-label-above">
<span class="field-label">Chazen Event Date:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-03-07T00:00:00-05:00">Friday, March 7, 2014</span></div>
</div><div class="field field-name-field-article-date-field field-type-datestamp field-label-above">
<span class="field-label">Date field:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-03-07T11:00:00-05:00">Friday, March 7, 2014 - 11:00</span></div>
</div>Fri, 07 Mar 2014 16:06:43 +0000bw2342244 at http://www8.gsb.columbia.edu/chazen/globalinsightsJoseph Stiglitz's Crystal Ballhttp://www8.gsb.columbia.edu/chazen/globalinsights/node/242
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<div class="field-item even"><p>The list of credentials Joseph E. Stiglitz holds is about a mile long and includes two Nobel prizes. So when Stiglitz speaks, business leaders listen. Here’s what he had to say at a recent forum, “Predicting the Future of the World Economy,” sponsored by the Jerome A. Institute of International Business.</p>
<p><b>On economists’ ability to predict:</b> Let me begin by distinguishing between different kinds of predictions. Economists may not be very good at predicting precisely what time and date a certain event will occur, such as the breaking of the housing bubble. But that doesn’t mean they cannot “forecast” the future. One set of predictions is broad-stroke, where we may not be exactly sure of the timing. Consider the 2008 global financial crisis. Well before the crisis, it was clear we had a bubble — clear to everybody except for those in the financial markets, that is. It was clear to anyone who took a moment to think about it that Americans couldn’t continue to spend so much of their income on housing. They were all counting on the continuation of high levels of capital gains. I and others knew and said this bubble couldn’t continue. But we couldn’t predict when it would break.
</p><p><b>Another kind of prediction we can make:</b> For this kind of prediction, we know with a very high degree of confidence what will happen, and even when. An example of that is climate change. It’s a process that’s actively unfolding, though we won’t experience its full effects in, say, the next year. Rather, the full effects are going to be happening over the next 20, 50, or 100 years, or more. The magnitude of those effects will depend on whether our policies change. Unless we significantly reduce our emissions, the consequences will be dire. But there is a chance we will wake up and adjust. Even if we knew how we would respond — how quickly we would reduce our greenhouse gas emissions — the severity of climate change is something we can’t predict with perfect accuracy. How many feet will the sea level rise, for instance? What part of Manhattan will be under water?</p>
<p><b>A third prediction we can make:</b> If we don’t do a better job of regulating our too-big-to-fail banks, and our over-the-counter markets are not transparent, we risk a significant probability of another financial crisis. There were underlying problems before the crisis in 2007 and 2008. They were disguised by a bubble, and that was the bubble that kept our economy going. If we don’t fix those underlying problems — structural transformation, growing inequality, global imbalances — in a fundamental way, we will likely enter into a period of malaise. That would mean a situation like Japan has had for many years — not disaster, but not robust growth.</p>
<p><b>Why GDP is a poor measure of economic performance:</b> Economists’ predictions of future growth typically center around GDP. But more and more economists are recognizing that GDP is not a good measure. Why? GDP tells only about a narrow part of economic performance, and it is a particularly inadequate measure of the well-being of citizens. It is striking that American GDP has been going up almost continuously for decades (2009 was the most recent exception). But median income today in the United States is lower than it was in 1989, almost a quarter century ago. I hope it’s temporary. I hope there’s mean reversion. But there is no evidence at this point. Unless we do something, this dynamic is likely to continue, with GDP increasing, while the incomes of large parts of the country continue to decline.</p></div>
</div><div class="field field-name-field-art-taxon-cat-id field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Article Type:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/taxonomy/term/24" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Insights: Forum Highlights</a></div>
</div><div class="field field-name-field-article-subject field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Global Insights Topics:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/usa" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">United States</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News Makers</a></div>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/economic" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Economic Policy</a></div>
</div><div class="field field-name-field-article-related-id field-type-node-reference field-label-above">
<span class="field-label">Related articles:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/node/218">Five Years in Limbo</a></div>
</div><div class="field-collection-container clearfix"><div class="field field-name-field-article-related-links field-type-field-collection field-label-above">
<span class="field-label">Related links:&nbsp;</span>
<div class="field-item even"><div class="field-collection-view clearfix view-mode-full field-collection-view-final"><div class="entity entity-field-collection-item field-collection-item-field-article-related-links clearfix" about="/chazen/globalinsights/field-collection/field-article-related-links/29906" typeof="">
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<div class="field field-name-field-article-related-link field-type-link-field field-label-above">
<span class="field-label">Link:&nbsp;</span>
<div class="field-item even"><a href="http://www8.gsb.columbia.edu/chazen/globalinsights/node/238/Predicting+%28or+Not%29+the+Future+of+the+World+Economy" target="_blank">View a video of the full panel discussion</a></div>
</div> </div>
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</div></div><div class="field field-name-field-article-detailed-image field-type-image field-label-above">
<span class="field-label">Detailed image:&nbsp;</span>
<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/detailed_image/Stiglitz215x152_0.gif" width="215" height="152" alt="" /></div>
</div><div class="field field-name-field-article-event-date field-type-datetime field-label-above">
<span class="field-label">Chazen Event Date:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-02-25T00:00:00-05:00">Tuesday, February 25, 2014</span></div>
</div><div class="field field-name-field-article-date-field field-type-datestamp field-label-above">
<span class="field-label">Date field:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-02-25T12:30:00-05:00">Tuesday, February 25, 2014 - 12:30</span></div>
</div>Tue, 25 Feb 2014 17:35:58 +0000bw2342242 at http://www8.gsb.columbia.edu/chazen/globalinsights5 Bons Mots from Glenn Hubbardhttp://www8.gsb.columbia.edu/chazen/globalinsights/node/239
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<div class="field-item even"><p>The Roman philosopher Cicero once wondered how two soothsayers could pass each other in the street without laughing. Today, given the turbulence of markets and governments, the idea that one can predict the future of the global economy seems like pure folly. But at a recent economic forum sponsored by the Jerome A. Chazen Institute of International Business, Glenn Hubbard, the Russell L. Carson Professor of Finance and Economics and dean of Columbia Business School, attempted to do just that. Here are his top-line thoughts.</p>
<p><b>On the purpose of economics:</b> I would remind all of you that George W. Bush once said about me that Glenn can’t even predict the past. My belief is that he meant data get revised, so some humility is in order. I definitely think I can tell you which questions to ask. I’m not sure I can necessarily answer them. </p>
<p><b>Understanding growth:</b> First, on the question of growth and how we might understand it in major regions of the world: I’ll look through a couple of lenses — one the lens of finance and the financial system and the other the lens of public policy. For the United States I am far more optimistic about the potential for long-term growth than I think many are. I say that for two reasons. First, even with demographic pressures on labor force participation rates, work is in no small sense a matter of choice. It depends on policies that support work. Second, our financial system has healed greatly since the crisis. Putting these together, I cannot imagine a place where I’m more excited about the prospect for innovation and productivity growth than the United States.</p>
<p><b>Europe’s prospects:</b> Looking through the same lenses, I just cannot get so excited about Europe’s long-term growth prospects. The financial system there has not adjusted as fast as the United States. There is not the same capacity to finance the new, the emerging, the innovative. I worry that Europe is in a series of very slow growth episodes — not just lurching between a recession and very slow growth, but a period of prolonged slow growth that threatens European living standards. Again, part of that too is policy.</p>
<p><b>The effect of an aging population:</b> I would mention three long-term sea-change factors that I look at in the economy. The first is demography. People think of demography as simply being about an aging society. Rather, I think of it as being an opportunity. So in an aging society, are we going to think of ways to provide financial services for that? If you look around the world, aging is not always correlated with the penetration of financial services that would support it — retirement, insurance. There are many opportunities for healthcare, for dealing with older people, for helping older people work. We are scratching the surface of a huge opportunity and a policy question wrapped inside of it, which is, what does it mean to grow old before you grow rich?</p>
<p><b>The effect of worldwide urbanization:</b> We are now seeing different parts of the world growing more urban and more rich. That leads again to a huge demand for services, for brands. And my question for this sea change is who will win that race for hearts and minds? Is it American brands and products? Is it local brands and products? Is it multinational brands and products from around the world? That will be one of the great business questions of the next fifty years. </p></div>
</div><div class="field field-name-field-art-taxon-cat-id field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Article Type:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/taxonomy/term/25" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Insights: In Their Own Words</a></div>
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<span class="field-label">Global Insights Topics:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/usa" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">United States</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News Makers</a></div>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/economic" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Economic Policy</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/europe" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Europe</a></div>
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<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/image2/Glenn215x152.gif" width="200" height="141" alt="" /></div>
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<span class="field-label">Link:&nbsp;</span>
<div class="field-item even"><a href="http://www8.gsb.columbia.edu/chazen/globalinsights/node/238/Predicting+%28or+Not%29+the+Future+of+the+World+Economy" target="_blank">View a video of the full panel discussion.</a></div>
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<span class="field-label">Detailed image:&nbsp;</span>
<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/detailed_image/Glenn215x152.gif" width="215" height="152" alt="" /></div>
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<span class="field-label">Chazen Event Date:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-02-21T00:00:00-05:00">Friday, February 21, 2014</span></div>
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<span class="field-label">Date field:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-03-01T09:45:00-05:00">Saturday, March 1, 2014 - 09:45</span></div>
</div>Fri, 21 Feb 2014 14:59:54 +0000bw2342239 at http://www8.gsb.columbia.edu/chazen/globalinsightsThe Great Malaise of 2014http://www8.gsb.columbia.edu/chazen/globalinsights/node/232
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<div class="field-item even"><p>Economics is often called the dismal science, and for the last half-decade it has come by its reputation honestly in the advanced economies. Unfortunately, the year ahead will bring little relief.</p>
<p>Real (inflation-adjusted) per capita GDP in France, Greece, Italy, Spain, the United Kingdom, and the United States is lower today than before the Great Recession hit. Indeed, Greece’s per capita GDP has shrunk nearly 25 percent since 2008.</p>
<p>There are a few exceptions: After more than two decades, Japan’s economy appears to be turning a corner under Prime Minister Shinzo Abe’s government; but, with a legacy of deflation stretching back to the 1990s, it will be a long road back. And Germany’s real per capita GDP was higher in 2012 than it was in 2007 — though an increase of 3.9 percent in five years is not much to boast about.</p>
<p>Elsewhere, though, things really are dismal: unemployment in the eurozone remains <a href="http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/3-29112013-AP/EN/3-29112013-AP-EN.PDF" target="_blank">stubbornly high</a>, and the long-term unemployment rate in the United States still <a href="http://research.stlouisfed.org/fred2/series/UEMP27OV" target="_blank">far exceeds</a> its pre-recession levels.</p>
<p>In Europe, growth appears set to return this year, though at a truly anemic rate, with the International Monetary Fund projecting a <a href="http://www.imf.org/external/pubs/ft/weo/2013/02/pdf/text.pdf#page=170" target="_blank">1 percent annual increase in output</a>. In fact, the IMF’s forecasts have repeatedly proved overly optimistic: the Fund <a href="http://www.imf.org/external/pubs/ft/weo/2012/02/pdf/text.pdf#page=210" target="_blank">predicted 0.2 percent growth for the eurozone</a> in 2013, compared to what is likely to be a 0.4 percent contraction; and it predicted US growth to reach 2.1 percent, whereas it now appears to have been closer to 1.6 percent.</p>
<p>With European leaders wedded to austerity and moving at a glacial pace to address the structural problems stemming from the eurozone’s flawed institutional design, it is no wonder that the continent’s prospects appear so bleak.</p>
<p>But, on the other side of the Atlantic, there is cause for muted optimism. Revised data for the United States indicate that <a href="http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm" target="_blank">real GDP grew at an annual pace of 4.1 percent</a> in the third quarter of 2013, while the <a href="http://data.bls.gov/timeseries/LNS14000000" target="_blank">unemployment rate finally reached 7 percent</a> in November — the lowest level in five years. A half-decade of low construction has largely worked off the excess building that occurred during the housing bubble. The development of vast reserves of shale energy has moved America toward its long-sought goal of energy independence and reduced gas prices to record lows, contributing to the first glimmer of a manufacturing revival. And a booming high-tech sector has become the envy of the rest of the world.</p>
<p>Most important, a modicum of sanity has been restored to the US political process. Automatic budget cuts — which <a href="http://www.imf.org/external/np/ms/2013/061413.htm" target="_blank">reduced 2013 growth by as much as 1.75 percentage points</a> from what it otherwise would have been — continue, but in a much milder form. Moreover, the cost curve for health care — a main driver of long-term fiscal deficits — has bent down. Already, the Congressional Budget Office projects that spending in 2020 for Medicare and Medicaid (the government health-care programs for the elderly and the poor, respectively) will be roughly <a href="http://www.cbo.gov/publication/44596" target="_blank">15 percent below the level projected in 2010</a>.</p>
<p>It is possible, even likely, that US growth in 2014 will be rapid enough to create more jobs than required for new entrants into the labor force. At the very least, the huge number (<a href="http://www.bls.gov/lau/stalt.htm" target="_blank">roughly 22 million</a>) of those who want a full-time job and have been unable to find one should fall.</p>
<p>But we should curb our euphoria. A disproportionate share of the jobs now being created are low-paying — so much so that median incomes (those in the middle) continue to decline. For most Americans, there is no recovery, with 95 percent of the gains going to the top 1 percent.</p>
<p>Even before the recession, American-style capitalism was not working for a large share of the population. The recession only made its rough edges more apparent. <a href="http://www.census.gov/prod/2013pubs/p60-245.pdf#page=13" target="_blank">Median income (adjusted for inflation) is still lower than it was in 1989</a>, almost a quarter-century ago; and median income for males is lower than it was four decades ago.</p>
<p>America&amp;rsqu;s new problem is long-term unemployment, which affects nearly <a href="http://www.bls.gov/news.release/empsit.t12.htm" target="_blank">40 percent</a> of those without jobs, compounded by one of the poorest unemployment-insurance systems among advanced countries, with benefits normally expiring after 26 weeks. During downturns, the US Congress extends these benefits, recognizing that individuals are unemployed not because they are not looking for work, but because there are no jobs. But now congressional Republicans are refusing to adapt the unemployment system to this reality; as Congress went into recess for the holidays, it gave the long-term unemployed the equivalent of a pink slip: as 2014 began, the <a href="http://www.washingtonpost.com/blogs/wonkblog/wp/2013/12/20/unemployment-benefits-for-1-3-million-workers-expire-next-week-heres-what-you-should-know/" target="_blank">roughly 1.3 million Americans</a> who lost their unemployment benefits at the end of December have been left to their own devices. Happy New Year.</p>
<p>Meanwhile, a major reason that the US unemployment rate is currently as low as it is, is that so many people have dropped out of the labor force. Labor-force participation is at <a href="http://data.bls.gov/timeseries/LNS11300000" target="_blank">levels not seen in more than three decades</a>. Some say that this largely reflects demographics: an increasing share of the working-age population is over 50, and labor-force participation has always been lower among this group than among younger cohorts.</p>
<p>But this simply recasts the problem: the US economy has never been good at retraining workers. American workers are treated like disposable commodities, tossed aside if and when they cannot keep up with changes in technology and the marketplace. The difference now is that these workers are no longer a small fraction of the population.</p>
<p>None of this is inevitable. It is the result of bad economic policy and even worse social policy, which waste the country’s most valuable resource — its human talent — and cause immense suffering for affected individuals and their families. They want to work, but the US economic system is failing them.</p>
<p>So, with Europe’s Great Malaise continuing in 2014 and the US recovery excluding all but those at the top, count me dismal. On both sides of the Atlantic, market economies are failing to deliver for most citizens. How long can this continue?</p>
Copyright: <a href="http://www.project-syndicate.org" target="_blank">Project Syndicate, 2014.</a></div>
</div><div class="field field-name-field-art-taxon-cat-id field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Article Type:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/taxonomy/term/25" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Insights: In Their Own Words</a></div>
</div><div class="field field-name-field-article-byline field-type-text field-label-above">
<span class="field-label">Byline:&nbsp;</span>
<div class="field-item even">Joseph E. Stiglitz</div>
</div><div class="field field-name-field-article-subject field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Global Insights Topics:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News Makers</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/economic" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Economic Policy</a></div>
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<span class="field-label">Image:&nbsp;</span>
<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/image2/leaf215x152.gif" width="200" height="141" alt="" /></div>
</div><div class="field field-name-field-article-related-content field-type-text-long field-label-above">
<span class="field-label">Related content:&nbsp;</span>
<div class="field-item even">&lt;em&gt;Joseph E. Stiglitz, a Nobel laureate in economics, is University Professor at Columbia University and a Chazen Institute adviser. His most recent book is&lt;/em&gt; &lt;a href=&quot;http://www.amazon.com/Freefall-America-Markets-Sinking-Economy/dp/0393075966/ref=sr_1_1?ie=UTF8&amp;s=books&amp;qid=1262810665&amp;sr=8-1&quot; target=&quot;_blank&quot;&gt;The Price of Inequality: How Today’s Divided Society Endangers our Future.&lt;/a&gt;</div>
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<span class="field-label">Related articles:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/node/218">Five Years in Limbo</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/node/192">Japan&#039;s Three Economic Arrows</a></div>
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<span class="field-label">Detailed image:&nbsp;</span>
<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/detailed_image/leaf215x152.gif" width="215" height="152" alt="" /></div>
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<span class="field-label">Chazen Event Date:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-01-07T00:00:00-05:00">Tuesday, January 7, 2014</span></div>
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<span class="field-label">Date field:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-01-07T10:00:00-05:00">Tuesday, January 7, 2014 - 10:00</span></div>
</div>Tue, 07 Jan 2014 15:17:54 +0000bw2342232 at http://www8.gsb.columbia.edu/chazen/globalinsightsVideo: The Economic Aftermath of the Arab Springhttp://www8.gsb.columbia.edu/chazen/globalinsights/node/231
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<div class="field-item even"><p>Adnan Mazarei, Deputy Director for the Middle East and Central Asia, International Monetary Fund, identifies the political and economic pressure points the Middle East faces today, and explains why a massive shift of population from Syria to Lebanon could hamper the region's recovery. He spoke at a Chazen Institute event, “ The Future of the World Economy: The Emerging Markets Stories’ on November 11, 2013.</p>
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<div class="field-item even"><a href="/chazen/globalinsights/taxonomy/term/25" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Insights: In Their Own Words</a></div>
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<span class="field-label">Global Insights Topics:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News Makers</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/economic" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Economic Policy</a></div>
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<span class="field-label">Related articles:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/node/220">New Chazen Report: Corruption Still Rampant in Emerging Economies</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/node/215">Emerging Markets: Nirvana Lost</a></div>
<div class="field-item even"><a href="/chazen/globalinsights/node/218">Five Years in Limbo</a></div>
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<span class="field-label">Keywords (for meta):&nbsp;</span>
<div class="field-item even">imf, emerging, markets, mazarei, arab, spring, lebanon, syria</div>
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<span class="field-label">Chazen Event Date:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2013-12-11T00:00:00-05:00">Wednesday, December 11, 2013</span></div>
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<span class="field-label">Date field:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2013-12-11T16:30:00-05:00">Wednesday, December 11, 2013 - 16:30</span></div>
</div>Wed, 11 Dec 2013 21:33:54 +0000bw2342231 at http://www8.gsb.columbia.edu/chazen/globalinsightsDriving Aston Martinhttp://www8.gsb.columbia.edu/chazen/globalinsights/node/230
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<div class="field-item even"><p>Looking every inch the Bond man, Ulrich Bez, the CEO of <a href="http://www.astonmartin.com/" target="_blank">Aston Martin</a>, stands before a packed room of Columbia Business School students, tieless but precisely tailored and wearing a pair of $1,000 leather sneakers.</p>
<p>Flash back to the year 2000. Ford Motor Co., which owned Aston Martin, needed to bring the 100-year-old brand back to life — and relevance. They approached Bez to see if he’d take it on. He had the right credentials, having worked for BMW, Porsche, and Daewoo. “It takes a lot to impress me,” recalled Bez. Aston Martin, the sports car with a rocket for an engine that James Bond drives in 11 of the franchise’s 23 movies, “had a mystique,” but “it was not competitive,” said Bez.</p>
<p>To return the brand to its former glory, Bez concentrated on reinstating quality and taking back the Aston Martin design in-house. The cars are still handmade, but Bez, who earned his engineering PhD from the University of Stuttgart, installed a modular system in which each part connects to other components. “It's five to ten times faster than hand-tooling the individual parts, so it allows small volume. It’s more efficient too, but our motive was to boost quality.”</p>
<p>Since Bez took the wheel in 2000, Aston Martin has gone private. Sales have grown more than fourfold. Some 50,000 of the company’s total 65,000 cars have been produced in those 13 years. And around 80 percent of Aston Martins are now sold outside of Britain. Here, Bez shares his thoughts on everything from the definition of a luxury brand to what sells in China to the future of automobiles.</p>
<h3>On what it means to be a luxury brand</h3>
<p>“Aston Martin was not as luxurious a product it could be till about 2004–2005. Aston Martins start at about $120,000 and go up to around $2 million, but price doesn't define luxury. Luxury is all about honesty and integrity — don’t pretend to be something you’re not. Don’t expect plastic to behave like leather or hand-stitching to come without some imperfections.</p>
<p>“Luxury doesn’t deal in commodity. We made a concept car, the CC100, inspired by the 1959 DBR1, for our 100th anniversary this year. Ten people said they wanted one but we said no. That’s not what we are about. For example, Louis Vuitton, to me, is less a luxury than a mass market product. On the other hand, exclusivity doesn’t equate to luxury.”</p>
<h3>On the paradox of perfection</h3>
<p>“I always strive for perfection, whether it’s with an engine or a sun visor. But perfection is also the death of innovation. You can always make something different, but change should make a product better and not modify the way an Aston Martin looks, smells, sounds. And there are different kinds of perfection. A race car before the race is perfect. After the race, it may be splattered with insects, but it’s still perfect.”</p>
<h3>On what it means to be the Bond car</h3>
<p>“It is part of what makes us the ‘coolest car brand’ and second only to Apple among all brands [according to the annual <a href="http://www.coolbrands.uk.com/">CoolBrands list</a>].”</p>
<h3>On growth</h3>
<p>“Apple has not altered the iPhone substantially in the past ten years, but it came out with the iPad, which changed its business. Similarly, Aston Martin may face changing markets. Geographically, we’re not even close to our volume potential.”</p>
<h3>On China</h3>
<p>“China has a completely different mindset than other markets. Europeans and Americans had mobility for a long time, and China made great leaps in mobility in the last 20 years. From my experience, successful Chinese businessmen tend to buy the biggest car they can find and hire a driver. We have to work with our dealers to explain the experience of driving an Aston Martin so they can transfer our values to customers.”</p>
<h3>On the automobile’s future</h3>
<p>
</p><p>“Further out, in 20 to 50 years, I expect that most cars will be driverless. As cars become mass transportation, they will move at a guided speed, and drivers won’t be able to change lanes or turn on lights. Sports cars have a future outside mass mobility, though, with people who want to experience acceleration on special tracks and roads.</p>
<p>“And hydrogen will be the future power source. Electric cars have some big problems: We’ve not yet solved how batteries can be disposed of. The cars can’t go far without recharging. To recharge on hydrogen takes about as long as to fill up on gasoline, but it doesn’t pollute — China may be a huge market. Today there are no hydrogen cars because there are no hydrogen filling stations; and there are no stations because there are no hydrogen cars. The first step will be hybrid hydrogen cars.”</p>
<h3>On the future of Ulrich Bez</h3>
<p>“I’m 70 years old and I am ready at any time to step down as CEO. First we need a CEO for the next 10 years. Someone who understands the brand, is knowledgeable about many things — you have to understand emotions, politics, medicine, all manner of things when designing a car ten years out.”</p></div>
</div><div class="field field-name-field-art-taxon-cat-id field-type-taxonomy-term-reference field-label-above">
<span class="field-label">Article Type:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/taxonomy/term/25" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Insights: In Their Own Words</a></div>
</div><div class="field field-name-field-article-byline field-type-text field-label-above">
<span class="field-label">Byline:&nbsp;</span>
<div class="field-item even">Sharon Kahn</div>
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<span class="field-label">Global Insights Topics:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News Makers</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Management</a></div>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/europe" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Europe</a></div>
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<div class="field-item even"><a href="/chazen/globalinsights/taxonomy/term/32" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Leadership</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/taxonomy/term/33" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Marketing</a></div>
<div class="field-item even"><a href="/chazen/globalinsights/taxonomy/term/35" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Operations</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/taxonomy/term/36" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Organizations</a></div>
<div class="field-item even"><a href="/chazen/globalinsights/taxonomy/term/41" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">World Business</a></div>
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<div class="field-item even"><a href="/chazen/globalinsights/node/213">How GE Does Business in China</a></div>
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<div class="field-item even"><a href="https://www.facebook.com/media/set/?set=a.657232820976755.1073741833.187750474591661&amp;type=3" target="_blank">See Facebook photos from Ulrich Bez&rsquo;s talk at Columbia Business School</a></div>
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<span class="field-label">Chazen Event Date:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2013-12-11T00:00:00-05:00">Wednesday, December 11, 2013</span></div>
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<span class="field-label">Date field:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2013-12-11T11:00:00-05:00">Wednesday, December 11, 2013 - 11:00</span></div>
</div>Wed, 11 Dec 2013 16:10:32 +0000bw2342230 at http://www8.gsb.columbia.edu/chazen/globalinsightsHow Ratan Tata Thwarted a Violent Labor Union Takeoverhttp://www8.gsb.columbia.edu/chazen/globalinsights/node/229
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<div class="field-item even"><p><em>In November 2013, Ratan Tata, chairman emeritus of the Tata Group, sat down with Gita Johar, senior vice dean of Columbia Business School, to talk about leadership in the face of adversity. Here, he discusses one the gravest challenges of his career.</em></p>
<p>“Fifteen days after I became the chairman of The Tata Group, we had a huge union eruption in Telco, which now is called Tata Motors. There was an outsider, in effect a gangster, who decided there was considerable wealth in our union and wanted to take over control of that. He had about 200 disruptive, violent, intimidating followers. The rest of the 4,000 people in that plant were uninterested. But we had made a mistake by taking the union for granted. The workers were very happy to wait and see what violence would get them.</p>
<p>“This guy wanted to take over the union and we would not let him do so. So we confronted him. There were two views: people felt we should appease him, get him out of the way by winning him over. I was of the view that we could never do that. He beat up or arranged to beat up four or five hundred of our employees. The police were in his pocket. You could go to the police and chances were that nothing would happen. And then he emerged on a really nasty path of going to our officer’s homes at two in the morning, ringing the bell with ski caps on, and then stabbing them, always in the thigh so they didn’t die but they all had to go get surgery. So he demoralized the management.</p>
<p>“There was increased pressure on me to give in. I thought, it’s never going to end here. It’s going to be a takeover of everything, and he will run us like a gangster unit and raid the union of the funds that it has.</p>
<p>“He called a strike, so everything stopped in the company. I put out a call to the workers to come back. They were all afraid to because of what he would do to their families. So I went and stayed in the plant for three days with the workers as they started to come back. We restarted production. People from purchasing, people from accounts, everybody lent their brawn on the shop floor and we started producing vehicles. [The thug] kept saying the plant was closed, so we took out ads showing the number of people that had come back. Everyone saw that the management was firm. So finally he lost. The police stepped in and they arrested him and many of his cronies, and the strike was over.</p>
<p>“As soon as he got out of jail, he put out a contract that he was going to kill me. Again, everybody said, “why don’t you make up with him?” We never did, and that was the turning point of labor relations for that company. Looking back on it, I would never have done it any other way.”</p></div>
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<div class="field-item even"><a href="/chazen/globalinsights/taxonomy/term/134" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Chazen India Insights</a></div>
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<span class="field-label">Global Insights Topics:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/news" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">News Makers</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Management</a></div>
<div class="field-item even"><a href="/chazen/globalinsights/subjects/asia" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Asia</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/subjects/india" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">India</a></div>
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<span class="field-label">Image:&nbsp;</span>
<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/image2/Tata215x152.gif" width="200" height="141" alt="" /></div>
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<span class="field-label">Related articles:&nbsp;</span>
<div class="field-item even"><a href="/chazen/globalinsights/node/227">Chazen Podcast: Ratan Tata, the Reluctant Celebrity</a></div>
<div class="field-item odd"><a href="/chazen/globalinsights/node/226">Chazen Podcast: Ratan Tata on Working Across Silos</a></div>
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<div class="field-item even"><div class="field-collection-view clearfix view-mode-full field-collection-view-final"><div class="entity entity-field-collection-item field-collection-item-field-article-related-links clearfix" about="/chazen/globalinsights/field-collection/field-article-related-links/29898" typeof="">
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<div class="field field-name-field-article-related-link field-type-link-field field-label-above">
<span class="field-label">Link:&nbsp;</span>
<div class="field-item even"><a href="http://www7.gsb.columbia.edu/video/v/node/3139" target="_blank">Video: Ratan Tata on the Origins of the Nano</a></div>
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<span class="field-label">Keywords (for meta):&nbsp;</span>
<div class="field-item even">tata, india, labor, strike</div>
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<span class="field-label">Detailed image:&nbsp;</span>
<div class="field-item even"><img typeof="foaf:Image" src="http://www8.gsb.columbia.edu/chazen/globalinsights/sites/globalinsights/files/field/detailed_image/Tata215x152.gif" width="215" height="152" alt="" /></div>
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<span class="field-label">Chazen Event Date:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2013-11-25T00:00:00-05:00">Monday, November 25, 2013</span></div>
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<span class="field-label">Date field:&nbsp;</span>
<div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2013-11-25T11:00:00-05:00">Monday, November 25, 2013 - 11:00</span></div>
</div>Mon, 25 Nov 2013 16:35:11 +0000bw2342229 at http://www8.gsb.columbia.edu/chazen/globalinsights